ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Travis Perkins's annualized net income for the quarter that ended in Dec. 2025 was £-405 Mil. Travis Perkins's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was £1,885 Mil. Therefore, Travis Perkins's annualized ROE % for the quarter that ended in Dec. 2025 was -21.50%.
The historical rank and industry rank for Travis Perkins's ROE % or its related term are showing as below:
LSE:TPK'
s ROE % Range Over the Past 10 Years
Min: -9.4 Med: 1.16 Max: 11.27
Current: -9.21
During the past 13 years, Travis Perkins's highest ROE % was 11.27%. The lowest was -9.40%. And the median was 1.16%.
LSE:TPK's ROE % is ranked worse than 91.67% of 156
companies
in the Industrial Distribution industry
Industry Median: 7.235
vs LSE:TPK: -9.21
Travis Perkins (LSE:TPK) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Travis Perkins ROE % Related Terms
Travis Perkins ROE % Historical Data
* Premium members only.
The historical data trend for Travis Perkins's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Industrial Distribution subindustry, Travis Perkins's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Travis Perkins ROE % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Travis Perkins's ROE % distribution charts can be found below:
* The bar in red indicates where Travis Perkins's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Travis Perkins (LSE:TPK) has a ROE % of -21.50% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Travis Perkins and its competitors. According to the industry distribution chart, Travis Perkins ranks #143 out of 156 companies in the Industrial Distribution industry, placing it in the top 91.7%.
Is Travis Perkins' ROE % too high?
Travis Perkins' current ROE % is -21.50%. Based on the distribution chart, Travis Perkins ranks #143 out of 156 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Travis Perkins has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Travis Perkins' ROE % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Travis Perkins ranks #143 out of 156 companies for ROE %. This places Travis Perkins in the lower half of its industry. The industry median ROE % is 7.24. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Industrial Distribution company?
The median ROE % among Industrial Distribution companies is 7.24, based on 156 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Travis Perkins and its competitors. For the Industrial Distribution industry, the median ROE % is 7.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Travis Perkins's current ROE % is -21.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Travis Perkins stock overvalued right now?
Based on GuruFocus' analysis, Travis Perkins (LSE:TPK) is currently considered Modestly Undervalued. The stock's GF Value™ is £7.12, compared to a current price of £5.34 — trading 25.1% below its estimated fair value. The current ROE % is -21.50%. Travis Perkins' overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Travis Perkins (LSE:TPK), the current ROE % is -21.50% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Travis Perkins (LSE:TPK) Overvalued in 2026?
Based on GuruFocus' analysis, Travis Perkins stock appears to be undervalued.
The current stock price of £5.34 is trading 25.1% below its estimated GF Value™ of £7.12.
GuruFocus considers Travis Perkins to be Modestly Undervalued.
Key valuation signals for LSE:TPK:
ROE %: -21.50%
GF Value™: £7.12 vs. price of £5.34 (25.1% below fair value)
No single metric tells the full story. See the LSE:TPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Travis Perkins PLC makes and sells products to the construction and home improvement industries in the United Kingdom. It offers commercial and industrial heating and cooling solutions, air conditioning, refrigeration, heat pump equipment and installation materials, and interior building products, among others. The company organizes itself into two segments: Merchanting, which generates maximum revenue, and Toolstation. The Merchanting segment sells building materials at prices specifically negotiated with customers, with variation in the products offered in each branch. The Toolstation segment includes both the UK and Benelux businesses, and sells building materials at a fixed price, with a fixed range in each store. Geographically, the company mainly operates in the United Kingdom.
71GF Score
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